Yadav, a former Congress state unit president, will take on Chouhan from the seat which is considered the latter's home turf.
The state goes to polls on November 28 and counting of votes will be taken up on December 11.
Talking to reporters in Bhopal, Chouhan said, "I welcome Arun Yadav ji in my area. But the Congress did injustice with Arun ji for the second time in three months. He was first removed from the post of PCC president. Now, he is fielded from Budhni. I request workers (BJP's) to give him due respect in Budhni."
Chouhan, chief minister since 2005, is a multiple-time MLA from Budhni.
Yadav, meanwhile, filed his nomination papers Friday after offering prayers at Salkanpur Temple.
Yadav asked Chouhan to explain the suicides of 30,000 farmers in the state and claimed that Sehore, the latter's home district, had witnessed the highest number of these suicides.
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